Online Shopping to Online Buying

[ed.brooks]

One website could answer all these questions and people would still visits 18+ sources. It's a large purchase. The problem is, with by visiting so many services, the buyer becomes so confused that by the time they visit the dealership, they're merely looking for some help (though not admittingly.)

The data suggests that consumers don't put equal emphasis on all 18-24+ sources - "On average, shoppers are influenced by six to seven different information sources but rely on just one or two resources as their main, go-to sources. They place the greatest weight on sources that they consider the most influential, helpful and trustworthy."

 

[ed.brooks]

Michia,

DR is filled with pioneers. We're way down the road on automotive ecommerce. IMO, your post lacking details. You rest your entire thesis on CTR (Click Thru Rate). You wrote:

View attachment 2860


Michia, you're selling a "Buy Online" product. CTR does not sell cars. This is not a success.

Then, you follow with:

"Shoppers clicking a “Buy Online” button had a 3-4x higher conversion rate than typical online lead sources on average."​

This is a vague statement, open to interpretation.
--Define 'conversion rate'.
--Define 'typical online sources' (you were specific in the table above)


To validate your product, talk about your form completion rate (i.e. bought the car online). Secondarily, for abandoned carts, talk about your lead gen rate.


p.s. This DR forum thread is filled this insights that you and your team will need to conquer.
p.p.s. It would be helpful to post a link to your product on a dealer's site.

 

[Jeff Kershner]

The "data" is full of holes. I smell something -

I'm not seeing anything out of line with their findings... There's always going to be variables but the number Michia and his team are reporting don't seem out of line. Re-read the article.

 

[ed.brooks]

I'm not seeing anything out of line with their findings... There's always going to be variables but the number Michia and his team are reporting don't seem out of line. Re-read the article.

So if you simply put a "buy online" button on your website you'll close 3-4 times as many leads? Ya think? No?
This is quest for Venture Capital. The big question remains; Did the dealers sell one more car?

 

[Alexander Lau]

So if you simply put a "buy online" button on your website you'll close 3-4 times as many leads? Ya think? No?
This is quest for Venture Capital. The big question remains; Did the dealers sell one more car?

The jury is still out and those days look like they are coming, as previously mentioned. Vroom just received $95M and bought out Texas Direct Auto (who I do believe sell a heckuva lot of cars online -- the largest on eBay Motors).

So ask yourself this question, how long before Vroom or the like creates software, which will enable dealerships to embed an online car buying widget or the like to their inventory? This is all coming down the pipeline.

 

[ed.brooks]

The jury is still out and those days look like they are coming, as previously mentioned. Vroom just received $95M and bought out Texas Direct Auto (who I do believe sell a heckuva lot of cars online -- the largest on eBay Motors).

So ask yourself this question, how long before Vroom or the like creates software, which will enable dealerships to embed an online car buying widget or the like to their inventory? This is all coming down the pipeline.

The fact remains that most (not all, most) dealerships want no part of online retail. They want the buyer in the store. Everything is geared towards getting the customer into the showroom and then into the box.
That may change, but that is the fact on the ground today...

 

[craigh]

So if you simply put a "buy online" button on your website you'll close 3-4 times as many leads? Ya think? No?
This is quest for Venture Capital. The big question remains; Did the dealers sell one more car?

It's not quite that simple.
You click the button and it starts a build and price type of deal builder.
Customer goes through, adds accessories, adds warranty, etc - the whole time they can see their finance payment for all options.
You can ask them for contact info up front (curiousity sometimes works) or save that for the last step.
The whole process is configuration based on how you want to do it. Live chat is also a part of this.
It's not like we're adding a website button and firing all the sales people - it's migrating the entire process to a digital platform.

 

[Tallcool1]

Michia,

DR is filled with pioneers. We're way down the road on automotive ecommerce. IMO, your post lacking details. You rest your entire thesis on CTR (Click Thru Rate). You wrote:

View attachment 2860


Michia, you're selling a "Buy Online" product. CTR does not sell cars. This is not a success.

Then, you follow with:

"Shoppers clicking a “Buy Online” button had a 3-4x higher conversion rate than typical online lead sources on average."​

This is a vague statement, open to interpretation.
--Define 'conversion rate'.
--Define 'typical online sources' (you were specific in the table above)


To validate your product, talk about your form completion rate (i.e. bought the car online). Secondarily, for abandoned carts, talk about your lead gen rate.


p.s. This DR forum thread is filled this insights that you and your team will need to conquer.
p.p.s. It would be helpful to post a link to your product on a dealer's site.

This is exactly what went through my mind when I read the article. 3-4 times higher than WHAT? How many actual transactions were completed 100% online via the Buy Now button?

I am not trying to bury my head in the sand, and pretend that I shouldn't be looking to the future. I am saying that this article made some pretty lofty statements based upon unsubstantiated data and user flow. If there is more "proof" available, I would be interested in seeing it.

 

[Jeff Kershner]

@Ed Brooks What he is referring to is - the customer that goes into the "buy online / shopping cart" process has a higher closing percentage VS your more overused conventional CTA's like "Get your ePrice". I've seen other studies across the board that prove this out. I was personally working with a company several years ago that provided a "buy online / shopping cart" experience and once the customer was engaged with that process and were taking actual steps towards the purchase, they ABSOLUTELY had a higher percentage of purchasing that vehicle from that dealership. Even if they didn't finish the entire purchase online.

 

[Alexander Lau]

The fact remains that most (not all, most) dealerships want no part of online retail. They want the buyer in the store. Everything is geared towards getting the customer into the showroom and then into the box.
That may change, but that is the fact on the ground today...

Big deal, things change and that's natural. Disruptive technology is beautiful and the way people buy cars will change. It's already being disrupted and has been for some time. Again, perceptions are negative towards it now, but that could easily change and quickly. How are groups like Vroom selling tons of cars online? Of course, there will be a certain demographic that wants to "kick the tires" and test drive, etc., etc., but that doesn't mean dealers should ignore the power of the online car sale.

Dealers (and I'm going back to the dealership level) ignore at your own peril. Your competition might not ignore it and you'll be out in the cold.